C Corporations, S Corporations, and LLC's

A C Corporation is a for- profit, state- incorporated business. Some benefits of a C Corporation are that it is easier to raise capital as a corporation than as a sole proprietorship or partnership. If a stockholder dies or wishes to sell out, the corporation still continues. They also utilize health plans and better retirement options like 100 percent deductable health insurance. Some disadvantages of a C Corporation is double taxation, formalities and regulations must be followed much more closely there, it is costlier to start than other businesses, and it takes more time and effort to maintain.
Link: http://www.allbusiness.com/business-planning/business-structures-corporations/2515-1.html

An S Corporation is a business that has shareholders and is taxed like a sole proprietorship or a partnership whereas a C Corporation is taxed as a seperate business entity. Some benefits of an S Corporation are that you can have the protection of limited personal liability without having to pay corporate taxes, and also you can minimize self-employment tax. Some disadvantages are that a lot of regulations and requirements must be upheld by an S Corporation, including a limit on the number of shareholders and like a C Corporation, it can be costly to set up and start up rather than starting a sole proprietorship or a partnership.
Link: http://www.allbusiness.com/business-planning/business-structures-corporations/2516-1.html

An LLC is a Limited Liability Company. Some advantages of an LLC are that the members are afforded limited liability and have pass-through taxes similar to a partnership, and you get all the benefits of forming a corporation but you avoid a few drawbacks that you would run into if you formed a corporation. Some disadvantages of an LLC are that businesses that operate in more than one state may not receive consistent treatment, some states do not tax partnerships but do tax LLC's, and an LLC is treated as a partnership cannot take advantage of incentive stock options.
Link: http://www.limitedliabilitycompanycenter.com/llc_disadvantages.html
And: http://www.gaebler.com/LLC-Advantages.htm

Behind the Enron Scandal

The article i found about Enron was about how a man named Arthur Anderson was found guilty in court for obstruction. Anderson audited peoples books for them at Enron. After the collapse of Enron, investors lost more than $60 billion. The jury convicted the entire firm, although Anderson was the main focus of this firm. They said he was the "corrupt persuader." Anderson wanted to appeal, but before he could the judge said to "force them off the fence." He could not appeal. The firm that Anderson was a part of could be no longer. At the end of it all Enron lost over $1 billion in just a matter of six months and there were many things to blame, not just Anderson.
Site:
http://www.time.com/time/business/article/0,8599,263006,00.html

Bigger Than Enron

An interview was done with Harvey Pitt about Enron, he is a prominent lawyer who represents Wall Street firms and the accounting industry. He has also been the Chairman of the Securities and Exchange Commission since 2001. From his interview, I learned that they had problems because he felt that thier problem was dealing with a system that was built 68 years ago, with no computers or technology. They asked him why they don't take a tougher approach like being affiliated with the SEC, and his answer was about the money. The budget for that would be 250 to 400 million dollars per year. He goes on talking about the audit committee and senior management. He says audit function is done by the audit committee and not by senior management, and you have to go into who appoints the audit committee. The issue there is that the audit committee is subject to the control of the CEO. It is just a back- door way of getting around the rule. Action is needed and that is why he said they are going to get tough with the new proposal they are putting out. People are saying that the reforms they are proposing are not going to get the job done and are half- hearted but Mr. Pitt is confident that they are going to succeed and sounds sure of it.
The link to Harvey Pitt's interview: ttp://www.pbs.org/wgbh/pages/frontline/shows/regulation/interviews/pitt.html 

On Balance Article Summary

The article I chose for this blog was What Employers want in a Tough Job Market. This article was about how you have to network and take extra courses to get the edge on other people. It is about what employers need to do when the job market is tough and theres not many jobs available. They talk about giving you tips that will empower you to take control of your own career and destiny.

Denise C. Probert. "What Employers Want in a Tough Job Market" On Balance 11/22/10: Pgs. 19- 20

Fiscal Period

Pizza Hut
1.) I chose Pizza Hut for this assignment because Pizza Hut has not only delicious pizza but good pasta and wings! They are always located in convenient places to get to and they always have good deals for pizzas. Right now they have a deal where you can get two of your favorite medium pizzas for six dollars each! They also have a deal where you can get any pizza fot just ten dollars! They are also a company that caters to you. They are an American chain restaurant that has been around since 1958 and have over 34,000 restaurants.

2.) Annual report

3.) There was not any specific information about Pizza Hut for their fiscal period because they are owned by Yum! brands. I used the fiscal period for Yum! brands to show what it is for Pizza Hut. Their fiscal period is yearly.

4.)The management for Pizza Hut probably feels that this is a good fiscal period because since it is owned by Yum! brands, they own several companies and it is probably much easier to take all of their fiscal periods at one time than at all different times. That is why all the companies they own have the same fiscal period. Plus it makes it easier for all the countries they do business in and get profit from.